How high will the amount be after ten years

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Problem 1: A second-year business student at the University of Iceland intends to have a good time in the future. She saved 180,000 two years ago, but because she is currently studying, she took a break from saving. She intends to continue the savings after one year (then she completes her studies) and will then deposit 180,000 ISK per year and increase that amount by 7% for each year. In total, she plans to save for 10 years and use the money to buy a house. It receives a return of 8% per year, how high will this amount be after 10 years.

Reference no: EM132658087

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